Termination for Convenience or Constructive Termination Clause Samples
The Termination for Convenience or Constructive Termination clause allows one or both parties to end a contract without cause, typically by providing advance written notice. In practice, this means a party can terminate the agreement even if the other party has not breached any terms, and the terminating party may be required to compensate the other for work performed up to the termination date or for certain costs incurred. This clause provides flexibility and risk management by enabling parties to exit the contract if circumstances change, without needing to prove fault or breach.
Termination for Convenience or Constructive Termination. In the event of the occurrence of any Termination for Convenience or any Constructive Termination (defined below), then the Repurchase Right shall automatically terminate as of the related Cessation Date as to, and the Purchaser shall acquire a vested interest in, an amount of the then Unvested Shares equal to twenty-five percent (25%) of the Shares; provided, however, that if the Termination for Convenience or Constructive Termination occurs following a Corporate Transaction (as defined below), the Purchaser shall acquire a vested interest in one hundred percent (100%) of the Shares.